Ben Bernanke

Taper Tantrum II: "There's No Simple, Painless Solution"

It is time for central banks to start acknowledging their limitations, and doing so by acting and not talking about their future intentions. It is also time for investors to stop believing that central banks had the answers to begin with.

"Last September Yellen Decided To Stay On Hold; Three Years Ago Bernanke Chose Not To Taper QE3"

Will she, or won't she? That is the question everyone wants answered regarding whether Yellen will hike rates in two weeks time. To be sure, historical precedented is not on the side of the hawks: as Bloomberg's Daniel Kruger reminds us, "Last September in ambiguous circumstances Yellen opted to stay on hold. Three years ago in September Ben Bernanke chose not to taper QE3 bond purchases."

"Dear Fed, Please STFU!"

"We have come to a point in time where you are causing more harm than good... You are once again creating complacency with your words. .. This is damaging to our society.  This is damaging to our culture.  This is damaging to our psyche."

Dear Janet... A Memo From Millennials To The Fed

The Federal Reserve’s long-term influence hinges in part on its ability to convince millennials that its current policies can help push inflation closer to the central bank’s 2% goal. That’s not as easy as it sounds, because this cohort has both a different history and current relationship with this economic variable. Why?

The Blessing Of Cash (And Why Central Bankers Hate It So Much)

Cash is an unambiguously a blessing to productive workers, savers, and entrepreneurs who wish to protect their hard earned money from the crazed theories and swindling schemes promoted by statists like Rogoff and the central bankers he advises.

Another Warning Sign

While there are many hopes of an end to the current “profits” recession, there is mounting evidence those hopes may once again be disappointed. One of the latest such indications is rising employee compensation. While rising employee compensation is good from the view it should lead to rising consumption, it also reduces corporate profitability (wages reduce profits.) Furthermore, this is especially problematic currently as rising compensation is being offset by soaring healthcare costs due to the Affordable Care Act.

Jackson Hole'd - A New Monetary Order Looms

The title of this year’s Jackson Hole meeting – “Designing Resilient Monetary Policy Frameworks for the Future” – is a telling one. It is actually a call to a specific goal, rather than the typical generic one. You get the feeling that the Fed has something on its mind... Translation: Fed projections have been wrong, and the central bank doesn’t know how to make them any better in the future.

Global Stocks Decline Along With The Dollar, As Jackson Hole Begins

Global stocks declined broadly, led by European equities which fell for the first time this week while currency markets continued their subdued tone even as the recent 4-day rally in the USD appears to have topped out, as investors took to sidelines ahead of the Jackson Hole meeting which begins tonight. Japanese and Chinese stocks had suffered modest drops in Asia.  S&P 500 Index futures slipped 0.2%, continuing yesterday's modest selloff.